Green Cash for Green Business

Are you a small business with green principles and need working capital?

Are you a small business that wants to invest in energy efficient equipment or upgrades?

Are you tired of using your credit card and personal savings because the banks aren’t lending?

Look no further. ACCION USA is a national nonprofit leader in microfinance, lending to the smallest of businesses that have trouble obtaining bank loans. Green America partnered with ACCION USA to bring you an exclusive look into ACCION USA’s green loan process and the opportunity to ask your questions directly to an ACCION USA loan consultant.

Green Cash for Green Business gives you access to the expertise of Renzo Mendoza-Castro.

Renzo Mendoza-Castro is a National Loan Consultant at ACCION USA. Mendoza-Castro is responsible for business development and providing capital to small business owners nationwide. In addition to promoting traditional business loan products, Mendoza-Castro is leading ACCION USA's Green Business Initiative in New England.

Keeping good business records is important to every business. Keeping good business records allows you to understand the Where? What? And When? of your business Where are my primary expenses? What do I sell the most of? When do I sell the most of it? Where are my primary Expenses? Keeping track of your expenses is critical to every business. It allows you to better understand where your major costs are AND allows you better understand if you can influence them in the short term or the long term (We will be discussing this in more detailed later in the presentation, i.e. Fixed Expense and Variable Expense.) What do I sell the most of? Keeping track of your revenue is also key. When you track what you sell, you are better able to see trends develop, which will then allow you to make better informed decisions about your products or services. When do I sell the most of it? Understanding how seasonality impacts your business is critical. Almost every business is impacted by it. Understanding how it applies to your business will allow you to implement strategies to maximize your high season and get your through the low period.

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Sherri

Sherri

Sherri

Sherri

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Transcript of "Green Cash for Green Business"

1.
The Green Business NetworkThe Green Business Network
Our mission is to work with
businesses everywhere to grow
a green economy that’s good for
people and the planet.
We are a vibrant community
of over 4,000 businesses
committed to creating
a better world.

4.
Green Business NetworkGreen Business Network
Membership OpportunitiesMembership Opportunities
There’s a place for everyone
on the green journey.
 Associate Members
An incubator for companies just starting and just
starting to go green.
 Approved Members
A space for established green companies
to access Green America’s consumer and
business audiences.
 Green Economy Allies
A dedicated category for nonprofits, educational
institutions, and peer certification programs.

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What is ACCION USA?
At ACCION USA, we are committed to serving low- and moderate-income
communities by providing access to business financing and counseling.
Our focus is on microentrepreneurs, often minorities and women, who
build businesses, provide jobs, create assets for themselves and their
families and contribute to the development of their communities.

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Agenda: Total Time 1 hour
We have an allotted time for questions at the end of the
presentation, but feel free to “raise your hand” and ask a question
at any time.
- Financing Your Business 101 (25 mins)
- ACCION USA’s Loan Products (15 mins)
- ACCION USA’s Loan Guidelines (15 mins)
- Questions (15 mins)
- Special Offer Referral Code:
ACCION USA will waive your loan application fee, but you must
have the Referral code to qualify.

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How to Get your Credit Report?
Contact all 3 Credit Reporting Agencies:
TransUnion: 1-800-888-4213 or visit www.transunion.com
Experian: 1-888-397-3742 or visit www.experian.com
Equifax: 1-800-685-1111 or visit www.equifax.com
You can request one free credit report per year at:
www.annualcreditreport.com
or by phone at 1-877-322-8228

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What is a Credit Score?
• A number that lenders use to predict how you will use credit in
the future (350-850).
• Credit scores take into consideration:
New Credit
Amounts owed
Types of Credit Used Length of Credit History
Payment History
10%
35%
30%
10%
15%

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Writing a Business Plan
• Most financial institutions require a written document
that will substantiate your budget and financials.
• Take time and make a thoughtful and realistic plan.
• This is the time to demonstrate your industry
knowledge and experience. (Green)

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Things to Consider: Income Statements
Can your business afford the loan payments?
$ales
(less) Cost of Sales
(less) Expenses
equals: Net Income
Is Net Income greater than 2x the loan payment?

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Things to Consider: Bank Statements
• Are deposits greater than withdrawals?
• Are there Insufficient Funds Fees (NSFs)?
• Are the balances declining or increasing over time?
• What are the frequent expenses?
Cash Management is Key!

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Keep GOOD Business Records
Understanding the 3 W’s
of your business
– Where are my
primary expenses?
– What do I sell?
– When do I sell it?

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Green Resource Center
ACCION USA will create an online ‘Green Entrepreneur
Resource Center’ to which you can refer your clients for
green information!
• What incentives and/or rebates exist for small businesses
trying to ‘go green’?
• Should I get a certification for my green business?
• How can I market my commitment to sustainability as it
relates to my business operations?
Green TA

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ACCION USA Prequalification Questions
 Credit Score over 575
 No more than $3,000 past due
 No Bankruptcy in the last year
 No Foreclosure in the last 2 years
 No late payments on mortgage and rent in the last year
 Mortgage Qualifiers
 Ineligible industries
 Start Up Requirements

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Start Up and Transition Loan Requirements
• 6 or more months in operation
• Financially independent co-signer, not with business
• 2nd
source of income from client or household member
• A market study and 12-months of financial projections
• Technical expertise and commitment to the business
• All required licenses and permits

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Basic Documentation
ACCION USA relies on documentation to verify strengths.
• 2 Forms of ID (one government issued)
• 3 Months of Personal Bank Statements
• 3 Months of Business Bank Statements.
• All necessary permits and licenses
• Most recent utility bill from home residence and business
• Detailed description of how loan will be used

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Additional Documents
The following depends on the condition and size of the
loan and the status of the business:
• Mortgage Note or Business Lease if applicable
• Personal and Business Tax Returns
• Financial Statements: Profit & Loss and Balance Sheet
• Co-borrower Application if applicable
• Documents to verify other strengths

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SPECIAL OFFER – a $30 Value just for you!
 ACCION USA is waiving the loan application fee
especially for all Green America “Green Cash for
Green Businesses” webinar participants.
 When you apply online, enter “Green Webinar” in the
Referral Name field and be sure to mention the
promotion to the loan consultant you work with.
 You must apply by Monday November 22nd,
2010 to
qualify for this offer.